Hyperliquid (HYPE) has been facing significant price stagnation since the start of 2025. Despite a few short-lived rallies, the token has struggled to break key resistance levels, leaving many traders wondering when the next major move will come. However, traders continue to hold onto a sense of optimism, with many keeping their positions in anticipation of future growth. Despite the lack of immediate momentum, the overall sentiment surrounding HYPE remains positive, pointing to the possibility of a significant rally in the near future.

Positive Sentiment Amid Stagnation

One of the key factors keeping HYPE’s outlook positive is the continued funding rate, which remains in the positive territory. A positive funding rate typically suggests that traders are leaning towards long positions, indicating that they believe in a price recovery. The sentiment from traders is crucial, as it helps to provide support and stability to the asset, even in a period of stagnation. This is important for the token as it continues to consolidate and search for an opportunity to break free from its current price range.

The persistence of long positions shows that traders are confident in HYPE’s potential, despite its underperformance over the past few weeks. This steady confidence could help maintain a price floor and prevent any significant declines in value. As a result, traders remain hopeful that HYPE could break through its current resistance levels and embark on a sustained upward move.

Decoupling from Bitcoin: A Double-Edged Sword

One of the more intriguing aspects of HYPE’s recent market activity is its decoupling from Bitcoin. While Bitcoin remains the dominant force in the cryptocurrency market, HYPE has shown a negative correlation with the world’s largest cryptocurrency. This trend is a double-edged sword for HYPE traders. On one hand, the lack of correlation means that HYPE is not directly impacted by Bitcoin’s price fluctuations, allowing it to potentially have its own market momentum. On the other hand, it also means that HYPE may not benefit from any positive movements in Bitcoin’s price, such as a potential rally if Bitcoin regains strength.

The decoupling from Bitcoin presents both opportunities and risks for HYPE. If Bitcoin continues to experience strong price action, HYPE’s failure to follow suit could hinder its ability to break past critical resistance levels. Additionally, the lack of correlation might make HYPE more susceptible to market corrections, as it won’t have the same responsiveness to Bitcoin’s movements that many other altcoins do.

Consolidation and Potential for Breakout

As of now, HYPE is stuck in a consolidation phase, oscillating between $19 and $27. This range-bound price action suggests that the token is in a holding pattern, waiting for a breakout. A breakout above the $27 level could indicate the beginning of a strong rally, with analysts predicting that HYPE could rise toward $32, a level that would represent a 20% increase from its current price. Reaching and holding above $32 could signal a continued climb, with $42—the token’s all-time high—coming into view.

However, if HYPE fails to break through $27 and loses support at $23, it could fall back toward the lower end of its range at $19, continuing the consolidation. In this scenario, the bullish outlook would be invalidated, and HYPE could need more time to recover and gather the necessary momentum to attempt a breakout.

The Road Ahead for HYPE

Traders are closely monitoring HYPE’s price action, particularly its ability to maintain positive sentiment and break through resistance levels. While the current stagnation may be frustrating for some, the fact that long positions remain prevalent suggests that many traders are patiently waiting for a rally. Should HYPE manage to breach key resistance levels and hold above $27, the possibility of significant gains becomes more likely. Traders are optimistic that the token’s eventual breakout could lead to new all-time highs and substantial profits for those holding long positions.